Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

Interest rate increased further, while CBSL managed to raised all the funds to repay the liabilities

Interest RatesOct 18, 2021
Interest rate increased further, while CBSL managed to raised all the funds to repay the liabilities
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Sri Lanka T-bills yields are rising at a rapid phase especially on 91Days. CBSL has allowed the T-bill price to fell free float as yields climbed to 8.39%, 8.16% & 8.17%. After 13 auctions CBSL has been successful in raising all the funds that need to settle the liabilities on Friday. CBSL has allowed to increased the 91Days T-bills by 3% after the last rate hike. This strategy would force institutional investors to reconsider their strategy of borrowing short-term in LKR terms to finance domestic expanse while keeping FX earning without repatriation.

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